Questions and Answers on the Commission's
proposal for the revision of industrial emissions legislation in the
EU.

1)
What is the Commission proposing in the new legislation on industrial
emissions?

The Commission's proposal focuses on four key problems (see question 4)
identified during a two-year review process when data was collected through an
extensive programme with ten studies and continuous consultation with
stakeholders (information about the data collection and consultation exercises
undertaken is available on http://circa.europa.eu/Public/irc/env/ippc_rev/library).

Firstly, the Commission proposes to overhaul seven existing pieces of
legislation on industrial
emissions[1], moulding them into a
single directive (for more information on existing legislation, see questions 8
and 9). This directive improves the clarity and coherence of the legislation and
reduces the administrative burden through combined requirements on granting
permits and streamlined reporting.

Secondly, the new directive improves and clarifies the concept of Best
Available Techniques (BATs, see question 10). Decisions that set permit
conditions outside BATs can only be taken in specific cases and need to be
justified and documented. This will lead to a more coherent and EU-wide
application of Best Available Techniques. In addition, the directive tightens
current minimum emission limit values for large combustion plants to ensure that
emission reductions needed for achieving the objectives of the Commission's
Thematic Strategy on Air Pollution are carried out (see question 5).

Thirdly, the proposal introduces minimum provisions on environmental
inspections of installations, the review of permit granting conditions, and
reporting of compliance and soil protection. Incentives for the development and
promotion of environmentally-friendly technologies are also included.

Finally, the scope of the legislation is extended to include additional
activities such as combustion plants of between 20 and 50 MegaWatts (MW),
production of wood-based panels and preservation of wood. The Commission
proposal also clarifies the scope of certain activities already covered by
existing legislation, such as waste treatment and food production.

Although it is not included in the legislative proposal, the Commission will
continue to work on developing possible EU-wide rules on emissions trading for
NOx and SO2, thus building on experience gained through
the implementation of the EU's carbon trading scheme.

2)
What are the expected health and environmental benefits of the Commission
proposal?

The Commission proposal will bring substantial benefits for human health and
the environment. Significant improvements in Member States' performance are
expected as a result of basing the granting of permits conditional on Best
Available Techniques (BATs). This will have positive knock-on effects on health
and the environment, greatly exceeding the costs installations will incur to
comply with the new directive.

For example, the net benefits from Large Combustion Plants (LCP) –
taking into account health benefits and compliance costs – would be
between €7 and 28 billion a year, including saving 13,000 and 125,000
premature deaths and years of life lost, respectively.

Extending the legislation to cover new activities will also lead to further
environmental and health benefits. For example, including a larger number of
combustion installations by lowering the threshold installations the directive
applies to from 50 MW to 20 MW will lead to net environmental and health
benefits – taking into account compliance and administrative costs –
of between €732 million and €1.6 billion.

The proposal is also expected to play a key role in stimulating the
development of environmental technologies, thus allowing the EU to be at the
leading edge of this increasingly important sector.

3) What is the
expected impact of the proposal on the simplification and reduction of
administrative burden?

Current legislation on industrial pollution is complex and sometimes
inconsistent. A single directive on industrial emissions will provide a clear,
coherent and simplified legal framework. It will address the inconsistencies
that exist in current legislation and will also reduce administrative costs,
most notably by simplifying the granting of permits, reducing reporting
requirements by operators and streamlining reporting by Member States.

The Commission's review identified certain unnecessary administrative costs
that could be reduced at Member State level as part of the implementation of the
legislation. The Commission will therefore establish Action Programmes with
Member States to reduce the administrative burden at national, regional and
local levels.

The main impact of the proposal on administrative burden is expected to
result in:

Alleviating the administrative burden by about €30 million/year
as a result of combined permitting and €2 million/year through
streamlined reporting and monitoring.

significant administrative cost reductions at Member State level –
estimated at between €150 to 300 million/year. Most opportunities to
cut the administrative burden are found at the national or regional
level.

The entire Commission proposal is expected to reduce the
administrative burden by about €105 to €255 million a year.

Administrative simplification will also lead to environmental and human
health benefits, as clearer links between BATs and sectoral requirements lead to
a better uptake of BATs.

4)
What are the shortcomings of the current legislation?

The Commission has analysed in detail the quality of industrial pollution
permits issued so far and has also examined the permitting, compliance and
enforcement regimes adopted by Member States.

On the basis of a two-year process of data collection involving an extensive
programme of studies and continuous consultation of stakeholders, the Commission
has concluded that the key principles of the current IPPC directive – in
particular the integrated approach based on Best Available Techniques –
still offer a sound platform for the future development of EU legislation on
industrial emissions.

However, there are important shortcomings in the implementation of the
current legislation that hinder the full exploitation of the environmental
potential originally intended by the directive that render enforcement at EU
level very difficult. The four key issues highlighted are:

Insufficient implementation of the Best Available Techniques (BATs).

Limitations to enforcement and environmental improvements that hinder
environmental protection and the stimulation of innovation.

Unnecessary administrative burdens due to the complexity and incoherence of
parts of the current legal framework.

Insufficient scope and unclear provisions of the current IPPC Directive that
could hinder the achievement of the Thematic Strategies'
objectives.

Another issue that came up in the review concerned the
limitations on the use of flexible instruments such as NOx and
SO2 emission trading systems within the present legislation. This
issue will be explored further but separately from the directive's revision.

5) Emissions from
industry have gone down, so why does industry need to do more?

The Thematic Strategy on Air
Pollution[2] includes clear objectives
for the reduction of a number of important air pollutants in order to achieve
levels of air quality that do not give rise to significant negative impacts on
and risks to human health and the environment. The Strategy was developed under
the 6th Environmental Action Programme and contributes to the long
term objective of the National Emissions Ceilings
Directive[3].

While industrial emissions have decreased over the past few years they
continue to have a significant impact on the environment and need to be reduced
further. The largest industrial installations still account for a considerable
share of total emissions of key atmospheric pollutants (83% for sulphur dioxide
(SO2), 34% for nitrogen oxides (NOx), 43% for dust and 55% for volatile organic
compounds (VOC)).

Member States' projected air emissions will greatly exceed the 2020 targets
of the Thematic Strategy on Air Pollution unless timely action is taken. All
sources of pollution need to be reduced. Based on the Commission assessments,
achieving the objectives set will only be possible with the full application of
BATs by industry.

Industrial installations are also the source of emissions to water and soil
and generate waste and use substantial amounts of energy. Strengthening the
application of BATs will prevent and control emissions of dangerous substances
to water. They will also contribute to the objectives of the Water Framework
Directive and the related Commission's initiatives to protect surface water from
pollution[4].

The Thematic Strategy on Soil[5]
emphasises the need to prevent the contamination of soils from dangerous
substances. The Commission proposal harmonises the obligation to avoid pollution
risks, to return installation sites to a 'satisfactory state' and to
periodically monitor soil on sites.

6) Why did the
Commission launch a review of the IPPC Directive before the date of
implementation for existing installations (30 October 2007)?

The review of the legislation should not hamper the correct and full
implementation of the IPPC Directive and the sectoral directives in their
current form. This remains a high priority for the Commission. However, it is
good regulatory governance to review, on the basis of implementation
experiences, a piece of legislation that was adopted over 10 years ago.

Achieving compliance by the deadline of 30 October 2007 for existing
installations has required a preparatory phase of several years with permits
issued sufficiently early to allow technical upgrades and changes. However, by
mid-2006 the Commission found that only 50% of installations in the EU (see
question 7) had been granted permits. This is where a number of shortcomings
were identified thus leading to the review of the IPPC Directive and related
legislation (see question 4).

In addition, investigations undertaken by the Commission revealed that the
quality of the permits issued was also a problem, in particular as regards the
implementation of BATs. There was no discernable difference between those
sectors where the BAT Reference Documents had been adopted several years before
the deadline of the Directive and those that had been issued more recently.
Furthermore, the analysis of the Member States' projected emissions, as provided
under the Thematic Strategy on Air Pollution, showed that full implementation of
BATs for large combustion plants was not foreseen by 2020.

The Commission therefore concluded that delaying the review of the current
legal framework would only postpone the streamlining and the necessary
strengthening, and would lead to an unacceptable delay in achieving significant
environmental and health improvements.

In addition, the revision was also one of the key demands from the 2003
stakeholder consultation on the IPPC Directive and the call for Better
Regulation[6].

7)
What has emerged from the monitoring of implementation of the present
legislation?

Given the shortcomings in implementation of the legislation identified by the
Commission, and in particular the IPPC Directive, action needs to be taken. The
late implementation of the legislation is unacceptable, especially in situations
where further contributions to emission reductions are necessary to meet
environmental objectives as indicated, as in the Commission's Air Thematic
Strategy for instance (see question 5).

It is clear that efforts made to date will not enable all Member States to
comply with the directive deadline of 30 October 2007. This is an unacceptable
situation. The Commission will therefore have to consider action to ensure
compliance with permitting as soon as possible.

The Commission will continue to collect information from Member States and
decisions will be made on the basis of such information. Where required the
Commission will pursue all necessary actions to ensure that the Directive is
correctly transposed and implemented, bringing infringement cases if
necessary.

For more information about the state of implementation, see MEMO/07/441.

Furthermore, the Commission has revised and refocused its current IPPC
Action Plan[7]for the
period 2008-2010, using the following 5 key actions.

Action 1 – Ensure full transposition of the legislation on
industrial emissions. The Commission will be requesting information from
Member States on the state of their implementation of the IPPC Directive and the
sectoral Directives, in particular the Solvents Emissions and Large Combustion
Plants Directives. The Commission will pursue all necessary actions to ensure
that the Directives are fully and correctly transposed, including through
infringement cases.

Action 2 – Support Member States in their implementation of the
legislation.This will incorporate aspects of enhanced information
exchange, guidance development, visits to authorities and training.

Action 3 – Enhanced monitoring and compliance checks of the
application of the legislation on industrial emissions.The Commission
will continue to monitor the number of IPPC permits issued and updated, and
where required investigate the system of monitoring and inspection at IPPC
installations.

Action 4 –Improve data collection for review of
BREFs and create stronger links with the Research Framework
Programme.The review of the BAT Reference Documents (BREFs) will
continue based on the agreed work programme and in close cooperation with
stakeholders. The Commission will ensure closer links between the BREF
elaboration process, the European Research Framework Programme and the
Competitiveness and Innovation Programme.

Action 5 – Support Member States in cutting administrative
burdens. The Commission will organise an information exchange with
Member States on the establishment of specific Action Programmes on cutting
administrative burdens at the Member State level for the permitting and control
of IPPC
installations.

8)
What are the objectives and provisions of the current IPPC Directive?

The Directive concerning Integrated Pollution Prevention and Control (IPPC)
was adopted in 1996 and had to be transposed into the national legislation of EU
Member States by 30 October 1999. This was also the date of application for new
installations, while all existing installations had to fully comply by 30
October 2007.

The aim of this key law on industrial emissions is to achieve a high level of
environmental protection through the integrated permitting of industrial and
agricultural installations. It covers a wide range of activities, including the
production of metals, the processing of minerals, chemical manufacture, poultry
and pig farming, waste incineration and fuel combustion in large combustion
plants. About 52,000 installations all over EU-27 currently fall under the scope
of the IPPC Directive.

The permit system to be put in place by Member States aims to ensure that all
of the relevant environmental issues for an installation are considered in an
integrated way. This includes the following:

operators of installations take preventive measures against pollution, in
particular through the application of the Best Available Techniques;

the site is returned to a satisfactory state when the installation
closes.

Member States must ensure that permits issued under the IPPC
Directive include emission limit values based on Best Available Techniques.
Operators of the installations concerned must obtain and comply with the permit
conditions in order to continue to undertake their activity.

Permits must not prescribe the use of any particular techniques or specific
technology, and they may take into account the technical characteristics of the
installation concerned, its geographical location and the local environmental
conditions. Most Member States delegate their obligations under the directive to
regional or local authorities.

9) What are the
sectoral directives related to industrial emissions covered by the Commission's
proposal?

The current EU legal framework on industrial emissions comprises the IPPC
Directive and six “sectoral" directives, namely the Large Combustion
Plants Directive[8], the Waste
Incineration Directive[9], the
Solvents Emissions Directive[10] and
three directives related to the production of Titanium
Dioxide[11].

The sectoral directives regulate the emissions (generally to air and in some
cases also to water) from certain industrial activities. They define in
particular specific requirements (generally emission limit values and monitoring
provisions) for certain pollutants for the installations concerned. For the
installations covered by both the IPPC Directive and by the sectoral directives,
the latter set only the minimum requirements that apply without prejudice to the
IPPC Directive. This means that the IPPC Directive may require stricter or
additional conditions than would apply under the sectoral directives alone.

Assessment of the implementation of the sectoral directives will continue.
For the Waste Incineration Directive, the Commission has provided its assessment
of implementation within the Communication issued alongside the legislative
proposal. This indicates that in general incineration plants meet the air
emission limit values set in the Directive and that the implementation of the
Waste Incineration Directive has brought significant improvement in the control
of waste incinerators across the EU.

The Commission will also consider the efforts that have been made by Member
States to meet the implementation deadlines for both the Solvent Emissions and
Large Combustion Plants Directives.

10)
What are Best Available Techniques (BATs)?

Best Available Techniques (BATs) are defined in the IPPC Directive as the
most effective techniques to achieve a high level of environmental protection,
taking into account the costs and benefits. BATs do not only refer to the
technology used at an installation, but also to the way the installation is
designed, built, operated and maintained.

In the determination of the Best Available Techniques (BATs), the authorities
that issue permits have to take into account the BAT Reference Documents (BREFs)
adopted by the European Commission. These BREFs are based on an exchange of
information through technical working groups consisting of experts from
industry, Member State authorities, research institutes and NGOs. This exchange
is coordinated by the Commission's European IPPC Bureau in Seville (http://eippcb.jrc.es/), which is part of the
Institute for Prospective Technology Studies at EU Joint Research Centre in
Seville (Spain).

This process has resulted in the adoption and publication by the Commission
of 31 BREFs. The BREFs describe what is considered to be a BAT at EU level for
each activity covered by the directive. The executive summaries of the BREFs are also translated into
the official EU languages[12]. The
BREFs will be reviewed in the coming years to ensure that they stay up-to-date
with technological developments.Further information on the IPPC Directive
and the sectoral sirectives is available at:http://www.europa.eu.int/comm/environment/ippc/index.htm